BRICS Ascension: An Economic Revolution on the March

It was thought that this would never happen, but the US dollar, a symbol of global financial power, may soon not be at the top. The BRICS, an economic alliance composed of Russia, China, and other emerging nations, are overcoming the G7. This coalition plans to free itself from the dollar for their exchanges and bet on Bitcoin, a surprising currency for some, but favorable for others. This strategy could lead to unprecedented global economic upheaval, with the dollar losing its historical supremacy.

The BRICS originally brought together Brazil, Russia, India, China and South Africa. Since 1 January 2024, several new countries, including Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates, have joined the alliance. This enlargement marks a historic turning point, bringing an unprecedented economic power. Historically, the G7 dominated with 41% of world GDP compared to 20% for BRICS. Today, BRICS account for about 35% of world GDP, surpassing the G7 of 30%.

The impact of this expansion is enormous in terms of population and resources. BRICS account for about 3.3 billion people, or 45 per cent of the world’s population, compared to only 10 per cent for the G7. This massive population offers a single consumer market that the G7 cannot match. The strategic enlargement of the BRICS, particularly with the arrival of Saudi Arabia and the United Arab Emirates, further strengthens their position.

Strategic Enlargement of BRICS

The enlargement of the BRICS is a key strategy that has enabled this alliance to gain power. Each new member makes a valuable contribution, strengthening the BRICS economic building. For example, Saudi Arabia and the United Arab Emirates, two of the largest economies in the Middle East, bring crucial energy resources and considerable economic weight.

BRICS, as an economic alliance, now controls about 44% of the world’s oil reserves and 53% of the gas reserves, giving them considerable economic leverage. This energy domination allows them to dictate prices and influence global energy policy. By controlling nearly half of the world’s oil reserves, BRICS positions itself as a key player on the international stage.

This influence is reinforced by their desire to detach themselves from the US dollar, a currency which, although dominant, poses more problems than it provides solutions to member countries. Since the end of World War II, the dollar has been the world reserve currency, giving the United States enormous economic power. However, this domination allows the United States to impose economic sanctions, such as the freezing of assets in dollars, which is seen as a barrier to the economic development of BRICS.

To counter this dependency, BRICS launched BRICSPay, an international alternative payment system at SWIFT, allowing member countries to settle their transactions using their own currencies. This strategic initiative aims to reduce their exposure to US sanctions and diversify the means of payment, thereby strengthening their economic independence.

The Energy Domination of BRICS

BRICS, as world leaders in oil, gas and coal production, has significant power in the global energy market. China and India, in particular, are the largest coal producers, accounting for a significant share of the global energy mix. This dominant position allows them to negotiate advantageous energy agreements and influence world prices.

BRICSPay: A Strategic Alternative

BRICSPay is designed to allow BRICS member countries to trade without the dollar, thereby reducing their dependence on the US-dominated financial system. Unlike SWIFT, BRICSPay offers a platform where transactions can be conducted in local currencies, protecting countries from US economic sanctions.

BRICS, in search of greater economic autonomy, are considering adopting Bitcoin as a new currency of international settlement. This bold initiative aims to reduce their dependence on the US dollar and build a more autonomous economic system. Unlike traditional currencies controlled by central banks, Bitcoin is decentralized, thus escaping the direct influence of the United States.

The adoption of Bitcoin by BRICS is not limited to its use as a means of payment. Some members, such as Ethiopia and the United Arab Emirates, have already invested in mining infrastructure, thus strengthening their digital economy. Russia, under Vladimir Putin’s leadership, legalized Bitcoin and cryptocurrency mining, providing significant investments to develop mining infrastructure.

This strategy goes beyond simple mining. BRICS are seriously considering using Bitcoin and other cryptocurrency for their international trade, potentially replacing the dollar in trade in resources such as oil and gas. This system would allow BRICS countries to trade freely, while taking advantage of blockchain technology to ensure traceability and transparency of trade. By freeing themselves from the dollar and integrating decentralized technologies, BRICS laid the foundation for a new global economic order.

The Adoption of Bitcoin by BRICS

BRICS see Bitcoin as a unique opportunity to create an independent financial system from the United States. By adopting this cryptocurrency, they seek to free themselves from the constraints imposed by the dollar in international transactions. This approach could inspire other nations to follow this example, thus redefining world trade rules.

BRICS Mining Infrastructure

Ethiopia and the United Arab Emirates have invested massively in bitcoin mining farms, using their energy resources to support this activity. Russia has also legalized mining, strengthening its commitment to cryptocurrency. These initiatives show that BRICS do not just use Bitcoin, but actively participate in its production.